FTSE pushes towards 4800 barrier
The London market pushed closer to the 4800 barrier today after upbeat economic news and lower oil prices buoyed Wall Street.
The FTSE 100 Index stayed in the black for the entire session, closing 44.4 points up at 4777.4.
The Dow Jones Industrial Average advanced 46 points to 10805 after the end of trading in London after a US government report confirmed an acceleration in the economy in the third quarter.
The price of US light crude also boosted trading in New York after falling nearly two US dollars to just over 44 US dollars a barrel.
Hopes that UK interest rates will fall sooner than expected gave the London market added impetus.
Investors were already in a positive frame of mind when it emerged that the Bank of England had discussed the merits of a cut in interest rates at its December meeting.
Currency traders drove the pound down against the dollar on the possibility of an early cut in UK interest rates in the New Year, offering a respite to exporters that derive a bulk of their earnings across the Atlantic.
Although investment group Amvescap ended the day at the top of the Footsie risers, Cairn Energy was back in favour after the disappointment of its update on drilling in India last week.
Cairn shares rose 2% or 24p to 1101p, outpacing rivals Shell and BP which were 5.75p and 2.5p stronger at 438.75p and 508.5p respectively.
News that HMV will launch a digital downloading service in partnership with US giant Microsoft was music to the ears of investors, leading to a 3% or 8.75p rise in its shares to 254.75p.
The day’s biggest blue-chip winners were Amvescap, ahead 15.5p to 318.25p, Reuters up 10.75p to 379p, Old Mutual lifting 3.25p to 133.25p and Sainsbury gaining 6.25p to 272.75p.
The biggest fallers were United Utilities, off 13p at 620p, ITV down 1.75p to 103.75p, AstraZeneca losing 28p to 1871p and Gallaher falling 11p to 775p.
